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CITIZENS FINANCIAL ADVISORY COMMITTEE
SPECIAL MEETING MINUTES
WEDNESDAY, December 4, 2019, 8:00 a.m.
CITIZENS FINANCIAL ADVISORY COMMITTEE SPECIAL MEETING
CALL TO ORDER — Committee Chair Mickey Segal called the meeting to order at 8:00 a.m. in the
Council Chambers Conference Room.
ROLL CALL
PRESENT: Howard Ursettie, Robert Miller, Mickey Segal, Tommy Thai, Jessica Louie
ABSENT: None
1. PUBLIC COMMENTS — None
2. REPORTS FROM STAFF LIAISONS — None
3. REPORTS FROM CITIZEN'S FINANCIAL ADVISORY COMMITTEE MEMBERS
a. Report from Committee — None
4. DISCUSSION ITEMS
a. Presentation Regarding Pension/OPEB Comprehensive Management Plan by UFI
Julio Morales of UFI presented an overview of a comprehensive Pension/OPEB funding plan,
identifying a combination of internal resource allocation and financing mechanism strategies
to address the City's UAL. The combination of strategies would result in cash flow savings
projected to total $85 million for paying down the City's UAL over time. The strategies
recommended for implementation are as follows:
• Allocation of UAL among all funds, inclusive of Enterprise and General Funds as part
of the annual budgeting process (this is currently in place).
• Synthetic Fresh Start
• Leveraged Refunding
• Tax-Exempt Exchange
• Issue pension/OPEB bonds
A discussion ensued and the Committee considered the proposed strategies as part of a
comprehensive plan and to include a formal written policy to be brought to the City Council for
adoption in March/April. The comprehensive plan and formal policy would outline how excess
monies and reserves will be used as well as formally documenting the allocation of additional
resources and potential funding solutions. During the discussion, it was the consensus of the
group to include all five proposed strategies and unanimously add a sixth, proposing to
leverage city property to further increase cash flow and pay down PERS UAL. Specifically, the
sale of the City's Par 3 Golf Course was proposed with the sale potentially generating between
$30-50 million in revenue. Because the proposed solutions are over a long-term period, it is
essential for the policy to stay active for 10-15 years in order to best address the UAL
challenge. It was further recommended by the group to require a 5-0 vote of the City Council
vote to change the policy for paying down UAL.
At the conclusion of the meeting, it was the consensus of the group to meet again on January
2, 2020 to review a draft pension management report to be presented to City Council and to
present the report and policy at a City Council workshop in March.
At the conclusion of the discussion, it was the consensus of the group to schedule the next meeting
on January 2, 2020 at 8:00 a.m. in the Council Chambers Conference Room.
ADJOURNMENT
Chairperson Segal adjourned this meeting at 10:17 a.m.
By:
Mickey Segal, Chairperson Hue Quach, Staff Liaison